Is Business Insurance Important?
The terminology ‘business insurance’ refers to a specific insurance coverage that protects a business against loss and what it covers will depend on what is specified and how the policy is worded. The three most common coverage’s are:
- General Liability: protects the business against bodily injury, liability claims, manufacturing mistakes or personnel errors, negligence, and property damage
- Key Person: protects against damage to the company’s financial future if a key person becomes disabled and cannot perform their responsibilities, or passes away
- Product Liability: protects the company against loss from damages encountered by a faulty product including personal injury or death.
Without business insurance a single claim could put a any small business in jeopardy. Larger companies, especially those that manufacture consumer products, could be responsible for thousands of consumer injuries and accidental deaths, the outcome of which means potential financial loss.
What Type of Business Insurance Do I Need?
To determine what type of business insurance you need consider the following:
- What type of business you own and operate
- Leasing or owning your property requires having property insurance
- If your business operations rely on the use of computers, you need to consider insurance coverage for them as well as if you have a company website which may also needs protection
- Business income insurance may be needed to protect your business against fire or property damage
- If you lease, purchase, or rent cars for the business consider auto liability insurance
- If there are employees of the business you may want a workers compensation program
If the above sounds confusing and you are unsure of all the insurance coverage you are going to need to consider it. We recommend scheduling an appointment with a business insurance agent and go over your needs in more detail.
Purchasing Business Insurance
Purchasing business insurance should not be a cumbersome and frustrating task. Here are some suggestions for making your purchase easier.
- Read your current coverage and look for overlaps so you do not overspend
- Compare at least three quotes once you determine the coverage you need
- Ask for “package rates”
- Review your policy annually to see if upgrades are necessary
- Get an annual analysis of your business insurance coverage from your agent
- Always be honest with your agent and never hide the truth
If you are looking to save money, following the above suggestions could save you tons in the long-run. Just do not leave yourself and your business exposed to financial loss.